Economics

Student Videos

Mean and Median Household Income

Level:
AS, A Level, IB
Board:
AQA, Edexcel, OCR, IB, Eduqas, WJEC

The mean and the median are the two averages required in the A level Economics exam syllabus. This video looks at mean and median household income for the UK.

Mean and Median Household Income

Mean household income is averageincome per household. The mean income value answers the question: “If income would be equally distributed to all people, how much would everyone earn?”

The mean does not reflect the underlying inequality in a data set of household incomes

Median household income is the income level at the midpoint of all households ranked (arranged) by their income. The median answers the question: “What does the person earn who earns exactly more than 50% and less than 50% of the population?”

We tend to use the median when the data is skewed and there are outliers for example with super-high incomes that tends to drag up the mean value.

Mean household disposable income in the UK was £35,600 in 2019

Median household disposable income in the UK was £29,600 in 2019

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